JEDDAH: Saudis and expatriates have complained about delays by insurance companies in paying compensation after traffic accidents. They urge authorities to enact regulations to force the companies to pay the indemnities without delay.
The Traffic Department says its duty is limited to identifying mistakes after inspecting accident sites, prepare reports and inform insurance companies about compensation. It says forcing companies to pay compensation is not within its jurisdiction.
The Saudi Arabian Monetary Agency (SAMA), which supervises insurance companies operating in the Kingdom, said it would suspend the activities of those companies that violate regulations and delayed payment of compensations.
Khaled Allaf, a Saudi, said his son had involved in an accident and the traffic police assigned 100 percent fault on the other driver. But the police released him on condition that the insurance company would pay for the repair work. "I have been running after the insurance company for the last six months and finally company officials said they would not be able to pay anything because their activities had been suspended by authorities," Allaf told Al-Madinah Arabic daily.
He said he had not received any help from the Traffic Department in getting the money. He insisted that the government change the insurance law to ensure that insurance companies pay compensation amounts without delay.
Saleem Al-Dahhas, another Saudi, said he had experienced trouble in getting compensation from the insurance company. "Even to get a small amount as compensation, I had to spend three months running after the company. If it was a big accident, it would definitely take more time," he said and asked whether there was any authority to check the performance of insurance companies.
Abdul Kareem Al-Muwallad called for the immediate intervention of authorities to stop the suffering of Saudis and expatriates as a result of the irresponsible attitude of insurance firms. "We have been hearing about this problem for a long time and the authorities should intervene to solve it quickly," he added.
Al-Muwallad said he had lost confidence in insurance companies after he failed to get compensation following an accident a few years ago. His insurance company had agreed to repair the car of the other party in the accident. "But the other driver informed me that the insurance company had not repaired his car. Considering his economic difficulties, I paid him the money and on that day, I decided not to deal with insurance companies in future."
Col. Ahmed Al-Otaibi, director of traffic in Makkah, said the Traffic Department was not responsible for forcing insurance companies to pay compensation. "It is the duty of SAMA, which has to follow up on the companies and make sure they pay compensation," he said.
A SAMA official said companies that operate legally would not delay payment of compensation. "Insurance companies have introduced a legal department to study traffic accidents, especially after noticing dishonesty on the part of some drivers," he added. He confirmed that SAMA had suspended some insurance companies after receiving complaints about them.
